The Right Start Faces Nasdaq Delisting Aug 23, 2001 12:00 PM
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Calabasas, CA—Children’s apparel and cataloger/retailer
The Right Start (Nasdaq: RTST) faces delisting from the Nasdaq
National Market for failing to comply with the minimum requirements for
market value of public float and net tangible assets. The company has
appealed the determination by requesting a hearing.
On Sept. 5, The Right Start plans to sell $20 million of its equity
to private investment group Waterton Management. That’s
the same day that The Right Start expects to close its acquisition of
toy retailer Zany Brainy. Holders of $3.5 million of The Right
Start’s convertible debt have indicated their willingness to
convert their debt to common stock in connection with the investment.
Finally, with the Zany Brainy acquisition, The Right Start will issue
1.1 million shares of its common stock currently valued at
approximately $4.2 million. Together, these events, the company says,
would increase its stockholders’ equity by over $27 million,
which it believes would satisfy Nasdaq’s requirements.
